TOKYO, Japan - In a bid to cater to the craze within Japan for the canned sparkling flavoured drinks, Chu-Hi, Coca-Cola has now announced plans to launch its first alcoholic drink.

Coca-Cola has said that for the first time in its 125-year history, it is planning to produce an alcoholic drink - with an alcopop-style product in Japan, which typically means a sweet but alcoholic drink.

The company is working on a product that is typically between 3 percent and 8 percent alcohol by volume.

Commenting on the company’s decision, a senior Coke executive in Japan told reporters that the move was a "modest experiment for a specific slice of our market.”

Jorge Garduno, Coca-Cola's Japan president also said, "We haven't experimented in the low alcohol category before, but it's an example of how we continue to explore opportunities outside our core areas.”

He, however, suggested that it was unlikely the drink would be sold outside of Japan.

In Japan currently, Chu-Hi or the shochu highball is being marketed as an alternative to beer.

The drink has proved to be especially popular with female drinkers.

With Japan’s younger consumers becoming more health conscious, Coca-Cola has been diversifying from fizzy drinks, including buying water and tea brands.

In November last year, reports quoted Wells Fargo analyst Bonnie Herzog as speculating that Coca-Cola might move into alcohol.

Herzog said at the time that the company is looking to "premium segments such as adult craft beverages.”

However, on Wednesday, the Atlanta-based company declined to say when the drink may launch or what it would be called.